first majestic silver

Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

That was the question I asked myself after being 100% cash into the last hour yesterday and seeing the bottom fall out on the gold stocks once again.


There are likely, at minimum, half a dozen reasons for the swift correction in precious metals over the past week. The real reason might be one, two, or even all of what I’m going to lay out below.

It has been a painful few days for those who believe that gold (and silver) are a safe haven from government money-printing machines and the mountain of debt of the Western economies.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

It has been an increasingly brutal ride for gold and silver, beginning around late March and accelerating through April. The gold price was over $1600 and on Monday April 15, it fell below $1350, a loss of $250.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

When volatility prevails in the gold market, I love seeing so many different opinions because it promotes critical thinking and healthy markets.

The threat of war against the United States is making headlines and roiling investors’ nerves.  While full-scale war is likely not imminent, it’s something worth considering in light of where we stand in the long-term War Cycle.

Until recently I was expecting the bubble phase for gold to occur as we came out of the next 8 year cycle low in 2016.

Three weeks ago, the investing public was awarded a brief glimpse into the mysterious world of central banking through events in Cyprus.

For gold to rise to levels significantly higher than the recent high of $1920, a new impetus is needed.

In the opening years of the last decade, most mainstream investors sat on the sidelines while "tin hat" goldbugs rode the bull market from below $300 to just over $1,000 per ounce.

"The main purpose of the stock market is to make fools of as many men as possible."


Bernard Baruch

When I was a boy I was told that anybody could become President. Now I’m beginning to believe it.



— Clarence Darrow


Gold bullion prices have been subjected to a cleverly orchestrated bear raid in our opinion.

Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011.

Precious metals investors can’t look back at this week’s declines in gold and silver and not be a little upset.  But it’s important to keep in mind that nothing happened this week that reversed the decade long bullish trends for go

Gold’s Bull market from 1999 is not over, and a huge rally leg remains in its future. That future is not far off.

There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.

What happened?! is the question so many are asking about Friday’s waterfall in prices.

Yes, I really do hate to say it but I did tell you so!


I’ve been sceptical and bearish on gold and silver in 2013 as soon as the initial low of $1,625 was broken.  We’re now some $150 lower.



TLT (T-Bond Proxy) Rally Update Chart

Back in 2008, silver fell from over $20 per ounce down to below $10. This was a stomach-turning experience for those who had begun investing heavily in the metal.

We are now at the point in the bull market where traders think that stocks are bullet proof.  Back in December  I warned this was coming. I said at the time that this round of QE was going to be different.

Latest Articles on Silver Phoenix 500


The first use of gold as money occurred around 700 B.C., when Lydian merchants (western Turkey) produced the first coins

Gold Eagle twitter                Like Gold Eagle on Facebook